In an unprecedented move, the state of Maine is preparing to vote on a groundbreaking plan to remove its two largest electric utilities, Central Maine Power and Versant Power, and replace them with a nonprofit utility called Pine Tree Power. If successful, this would be the first time in U.S. history that a state's utilities were forcibly removed simultaneously. The referendum, which will take place on November 7, has garnered attention from ratepayers across the country who are discontent with their own utilities.

The proposed utility takeover aims to address several issues that Maine residents have faced with their current utilities. The creation of Pine Tree Power would mean that the new utility would be accountable solely to ratepayers rather than corporate shareholders. Supporters argue that this would result in lower costs, increased investments in the grid, and improved performance. Additionally, the interest rates for long-term borrowing for capital improvements would be more favorable for Pine Tree Power.

Both Central Maine Power and Versant Power have ranked poorly in customer satisfaction, with longer response times to power outages and higher electricity rates than average. As a result, supporters of the referendum believe that there is little to lose in pursuing this change. However, critics, including Democratic Governor Janet Mills, express concerns about the potential politicization of the power grid. They also question the projected savings due to the billions of dollars required for the buyout, as well as the possibility of prolonged litigation.

The stakes in this referendum are evident in the amount of money spent on the campaign. The owners of Central Maine Power and Versant have donated almost $40 million to oppose the takeover attempt, significantly surpassing the $1.2 million raised by supporters. Despite the financial disadvantage, supporters remain hopeful, with Seth Berry, a former state senator and critic of CMP, characterizing the matchup as a "David vs. Goliath" situation.

The outcome of the referendum in Maine could have implications beyond the state itself. Communities in San Francisco, San Diego, Ann Arbor, Michigan, and Rochester, New York, are among those currently considering similar actions against their investor-owned utilities. While these initiatives are on a smaller scale compared to the proposed takeover in Maine, experts suggest that the results could have a contagious effect on state policies and trends.

However, some experts caution against expecting a change in ownership to automatically solve problems. Mike Jacobs, a senior energy analyst at the Union of Concerned Scientists, is skeptical of Maine's referendum and believes that the focus should be on addressing issues directly rather than demanding new ownership.

The discontent among electric ratepayers in Maine can be traced back to the acquisition of Central Maine Power by Iberdrola in 2008. At the time, the company's focus on renewable energy seemed promising for the state. CMP initiated a $1.4 billion power grid upgrade, which included increased capacity for renewable energy. However, the relationship soured over the years. CMP faced backlash for its mishandling of a billing system rollout in 2017, resulting in incorrect cutoff notices, investigations, and lawsuits. The billing debacle coincided with frustration over slow responses to storm-related power outages, rising electricity costs, and opposition to a $1 billion hydropower corridor project. Environmental advocates also accused CMP of delaying the connection of Maine-based renewable energy projects to the grid.

The sentiment among ratepayers in Maine varies. While some are eager for change, others are more cautious. Christie Decker of Wilton, who experienced billing problems and received a cutoff notice, is critical of Central Maine Power but remains uncertain about Pine Tree Power. She believes that more concrete plans are needed before making a decision.

If approved, the proposal would establish a 13-member board for Pine Tree Power. The utility would contract with a private grid operator through a competitive bidding process. The board would approve an operation plan, and workers from CMP and Versant would receive bonuses to join the new contractor. Pine Tree Power would still face challenges similar to its predecessors, including the high cost of maintaining power lines and substations across a rural area. Additionally, the utility would have no control over the actual cost of electricity, which accounts for approximately half of consumers' monthly bills.

Even if the proposal succeeds, it may face another hurdle. A second ballot question would require voter approval for borrowing exceeding $1 billion, potentially limiting access to bonds necessary for the buyout. Opponents of the referendum argue that the proposal asks ratepayers to take on debt, endure bureaucratic and legal battles, and hope that elected officials can eventually improve cost and reliability.

Despite the skepticism, Al Cleveland, the campaign manager for the movement to oust the utilities, remains optimistic. He asserts that the current situation cannot get any worse and that improvements are necessary. Ultimately, the fate of Maine's utilities will be decided by its residents, and the outcome may have far-reaching implications for the future of electric utilities in the United States.